06-12-2012, 02:30 PM
Core banking solution (cbs)
1Core banking.pptx (Size: 1.31 MB / Downloads: 29)
MEANING
Core banking is a general term used to describe the services provided by a group of networked bank branches. Bank customers may access their funds and other simple transactions from any of the member branch offices.
The platform where communication technology and information technology are merged to suit core needs of banking is known as Core Banking Solutions.
Here, computer software is developed to perform core operations of banking like recording of transactions, passbook maintenance, interest calculations on loans and deposits, customer records, balance of payments and withdrawal. This software is installed at different branches of bank and then interconnected by means of communication lines like telephones, satellite, internet etc. It allows the user (customers) to operate accounts from any branch if it has installed core banking solutions. This new platform has changed the way banks are working.
FACILITIES AVAILED FROM CBS BRANCHES BY CUSTOMERS
To make enquiries about the balance; debit or credit entries in the account.
To obtain cash payment out of an account by tendering a cheque.
To deposit a cheque for credit into an account.
To deposit cheques / cash into account of some other person who has account in a CBS branch.
To get statement of account.
To transfer funds from one account to some other account – provided both accounts are in CBS branches.
To obtain Demand Drafts or Banker’s Cheques from any branch on CBS – amount shall be online debited to the account.
ADVANTAGES OF CBS FOR BANKS.
Standardization of process within the bank.
Better customer service leading to retention of customer and increased customer traffic.
Availability of accurate data & Better use of available infrastructure.
Better MIS and reporting to external agencies such as Govt., RBI etc.
Increased business volume with better asset liability management and risk management.
BANKS ON THE CBS PLATFORM
All private and foreign banks are on the CBS platform.
Among the State-owned banks, SBI and its associate banks, Punjab National Bank, Bank of India, Bank of Baroda, Union Bank of India, Corporation Bank, Andhra Bank, Oriental Bank of Commerce and Indian Bank are on this platform.
CASE STUDY OF CBS IMPLEMENTATION IN BANK OF BARODA
Bank of Baroda (BOB), India’s fifth largest bank and prominent among the global top 200, with assets in excess of USD 32 billion, has a network of over 2800 branches and offices, and about 700 ATMs.
It offers a wide range of banking products and financial services to 29 million global corporate and retail customers, in the areas of investment banking, credit cards and asset management.
With growing base of clientele, Bank of Baroda felt the need for automation and technology focused business transformation program. This made a platform for core banking solutions (CBS) which was partnered by Finacle package whose provider is Infosys.
SUMMARY
A technology platform, with a rich palette of features is a pre-requisite for a Post Office to thrive in this flattening world.
Post Offices with the vision to harness their technology strategy to drive their business goals will be the ones with the power to respond to changing business dynamics in the flat world.
Due to its benefits, Post Offices should take steps to implement the CBS with a view to build relationship with the customer based on the information captured and offering to the customer, the customized financial products according to their need.